If you purchase or register a motor vehicle in North Carolina, you will be required to pay property tax on the vehicle. If you do not claim North Carolina as your Home of Record, you must furnish a current Leave and Earnings Statement (LES) to the Tax Office in order for the tax charges to be released.

If your vehicle is titled in your name, and that of a dependent or some other significant person who is not active duty Military, you will be responsible for the tax based on 1/2 of its retail value.

The Military Spouses Relief Act does exempt qualifying military spouses from NC ad valorem taxes. In order to qualify, the military spouse must provide proof of having established and maintained a domicile in the same state as the military member. In order to receive the exemption, military spouses must provide a copy of their Dependent Military ID, the military member’s LES, and a tax return, driver’s license or other document showing proof of residency in the military member’s state of residence.

Regardless of Home of Record everyone must pay the North Carolina Road Use tax that is collected by the DMV at the time of registration of the vehicle in North Carolina.

The Tax Office will require that you furnish a current (LES) each year at the time of tag renewal to ensure that you are still eligible for the exemption.

If you lease a vehicle from a Company such as Navy Federal or Ford Motor Credit they will be billed initially for the tax and depending on your lease agreement with these companies, you will be held liable for the taxes. The lease companies are a business entity and cannot claim your exemption.

If you have paid personal property taxes and have not notified the Tax Office of your Military Non Residence Status please contact the office and ask if you would qualify for a refund.